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Analyze the impact of the tax on the government and society. Support your argument based on facts and data that are appropriate.
The slope of a budget constraint is the “rate of exchange” in the market. What is the slope of an indifference curve? a. The marginal utility of the product being purchased and consumed. b. The relative marginal consumption value. c. The opportunity ..
Consider a Bertrand model with two firms facing the market demand Q(p)= 100 - p . Both firms have a constant marginal cost of 20. The firms compete over prices, but each firm has a production capacity of 25 units. If Firm 1 believes that Firm 2 will..
Suppose now that the monopoly can offer a menu of different quality levels at different prices. Find the profit maximizing menu that the monopoly will offer in each of the two cases considered in part (a) above.
Should financial institutions be prevented from becoming too big to fail? What criteria should be followed in making such judgments? 2. Should consumer decisions concerning loans be regulated? 3. Should governments use public money to bail out failin..
Suppose Montana establishes an income tax schedule that has a tax rate of 5% on the ?rst $20,000 of income, 10% on the next $10,000, and then 20%
How much profit is the firm making? What output recommendation would you make as the company economist?
Also to understand the meaning of these emotions and to regulate one's emotions accordingly in a cascading model. Explain
Firms often engage in corporate social responsibility. Discuss three reasons why a firm might elect to engage in such behavior. Under what conditions would corporate social responsibility generate increases in social welfare?
How popular notion of business profit is is different from the economic profit concept? What role does the idea of normal profit play in this difference? "In the long run, profit maximizing firm will never knowingly market unsafe products. However, i..
At the end of the third quarter of 2015, the money supply in the U.S. was $2 trillion. That is, the available currency and deposits in the U.S. during July, August, and September 2015 was two trillion dollars. During the third quarter of 2015, which ..
If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for a. just under $7 b. $8 c. $7 d. just over $7. If the bidders at a second-price auction have true values of $78, $72, $66, and $65, the it..
When a university bookstore prices chemistry textbook at $200 each, it generally sells 120 books per month. If it lowers the price to $160, sales increase to 160 books per month. Given this information, we know that the price elasticity of demand for..
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